Those not taking advantage of Section 321 for cross-border ecommerce fulfillment could be missing out on significant savings. This cost-cutting shipping method eliminates taxes, fees and duties typically associated with importing products into the US.
CBP’s ACE eManifest system makes it easier for highway carriers and other filers to submit Section 321 shipment data in an informal way. Learn how this form of entry could benefit you.
Removing Fees and Paperwork
Every business wants to save money when it comes to shipping logistics, as this can have a dramatic effect on anticipated profits. eCommerce companies can take advantage of Section 321 by eliminating many duties and fees on qualifying shipments.
To qualify under Section 321, an import shipment must have an estimated value of $800 or less and meet certain commercial terms and requirements, such as being import from air, land, or sea and providing US orders and product descriptions.
Even when all requirements have been fulfilled, additional details must be included during formal entry filing via ACE. It’s vital that businesses work closely with freight forwarders and customs brokers to ensure all paperwork is filed accurately so as to avoid incurring costly penalties for mistakes in paperwork filing procedures. Streamlining this process also speeds clearance time at borders thereby decreasing international fulfillment costs.
Streamlining the Shipping Process
One of the greatest advantages of Section 321 is how it streamlines the shipping process, enabling faster international fulfillment times and saving your business money in the process. This feature is especially valuable for eCommerce companies with warehouses or distribution centers located within the US.
However, companies should keep in mind that only one 321 claim can be filed per day and any attempts at filing multiple 321 claims can result in severe penalties. Therefore, it is imperative to hire a customs broker with experience handling this type of importation.
Customs consulting firms can be invaluable resources in getting started with Section 321. Their consultants will ensure your logistics team knows exactly how to file for this form of entry – such as understanding what types of merchandise qualify as Section 321 entries as well as any anti-dumping and countervailing duties that might prohibit such filings.
Preventing Fraudulent Imports
Logistics involved with shipping goods can be complex and time-consuming, making efficient procedures essential to a smooth experience and profit. Customs and taxes play a large part in shipping costs, which makes adhering to CBP guidelines essential.
Section 321 allows businesses to reduce fees and paperwork related to importation into the U.S. However, it’s essential to understand all requirements for claiming the de minimis value to avoid delays and costly penalties.
With increased tariffs driving up import costs, using Section 321 can help your business bypass these fees while still offering quality products to your customers. In fact, some businesses have used this law to import from China that wouldn’t have made financial sense before due to high tariffs. For more details regarding Section 321, speak with an experienced customs consultant familiar with its rules and limits.
International shipping logistics can be costly for both eCommerce companies and large corporations, especially due to import duties, taxes, and fees that can significantly impact expected profits. By leveraging the benefits of the ‘section 321 customs entry,’ which allows for the import of low-value goods into the US under this program, you have the opportunity to save substantial costs while gaining a competitive edge over your peers.
Importing using this route can be challenging and requires careful planning. To successfully utilize this method of importing under the ‘section 321 customs entry,’ one must strictly adhere to the De Minimis threshold of $800 per shipment and only claim one 321 exemption per day. Failure to comply could result in penalties that outweigh any potential savings achieved from bypassing tariffs.
Partnering with an experienced customs broker is crucial to ensure accurate and timely filing of all documentation. A customs broker can also address any inquiries that arise during the process. Moreover, they will guide your team through the intricacies associated with tax-exempt shipments that fully comply with US Customs regulations